The present invention relates to a balloon that can dispense medications in a predetermined location within a bodily organ and especially relates to a balloon catheter which can simultaneously provide forcible expansion of the cross section of a coronary artery that has been narrowed by atherosclerotic lesion or stenosis and also dispense a medication to the site that has been forcibly expanded. In particular, the medication dispensing balloon of the present invention is disposed at the distal end of a catheter shaft having a plurality of lumens therein. The balloon not only forcibly expands the cross section of the coronary artery but also can simultaneously deliver a dosage of medication at the site of the expansion thereby to avoid injecting large quantities of the medications intravenously when only a small site needs to be treated. Moreover, the present invention relates to a inflatable medical device in which the wall of the balloon serves both as the containment mechanism for the inflation fluid and also as the dispensing vehicle for medications.